Non-appearance of supplier cannot be reason for treating purchases as unexplained expenditure

PCIT Vs Sanjay Dhokad (Bombay High Court) Bombay High Court held that purchases cannot be treated as unexplained expenditure (i.e. fictitious purchases) merely because suppliers have not appeared before AO or CIT(A). Facts- During the course of assessment, the assessee was asked to show cause as to why the alleged purchases from the said 21 parties should not be treated as his unexplained expenditure. The show cause notice claimed that notice u/s. 133(6) of the Act, had been issued to the said 21 suppliers who, after having been served with the notice had not replied thereto. That spot enquiri...